The introduction of the Apprenticeship Levy in April 2017 has changed the way that government funds apprenticeships in England. All businesses operating within the UK with a wage bill of over £3million are required to contribute to the Apprenticeship Levy.
- If the levy applies to your business you will be required to pay 0.5% of your entire wage bill into the levy. This will be offset against a levy allowance worth £15,000 for each tax year.
- You will only be able to use your levy payment for government backed apprenticeships.
- Levy payments will expire after 18 months.
Speak to an Advisor at our employer engagement team on 01206 712043 to make your levy payments work for you.
Levy paying employers will pay the full cost of the agreed funding band using their Digital Apprenticeship account.
Where applicable, non-levy paying employers will need to contribute 5% of the maximum funding band as published by the Skills Funding Agency for the delivery of training and assessment for their apprenticeship.
An employer contribution fee will be required for:
- All non-levy paying employers recruiting an apprentice aged 22 or over*
*For non-levy paying employers full government funding is available for an apprentice aged between 16-21 years old and apprentices aged between 22-24 years old who have either an Education, Health and Care Plan (EHCP) or has been in the care of their local authority, where the employer employs less than 50 employees.Â
Any associated cost to the individual will be made clear at the interview.